PO Status and How to Resolve
As we approach fiscal year end in June, it may become necessary for departments to begin closing encumbrances (now called committed costs) in iO.
There are a few scenarios that your department may see during this review. There are five statuses for Purchase Orders:
Open – A PO has a remaining amount that has not yet been invoiced or received. This results from not been an order not being fully completed, which can be viewed in the requisition/PO lifecycle. It is the departments’ responsibility to determine if these orders should remain open, or if further action should be taken (see Change Order Process below).
Closed for Receiving – A PO has a receipt has been created, but the PO has not been fully invoiced. For further information, departments should contact payment@rice.edu.
Closed for Invoicing – A PO has an invoice that has been posted to the PO, but has not been received partially or in full. The individual who is Entered by or Requester will need to create a receipt for the open amount or quantity. **NOTE** Non-Standard Disbursements do not need a receipt, but will be left in the “Closed for Invoicing” status. If you wish to close NSD POs, you can create a receipt without it causing duplicate or delayed payment.
Closed – A PO has been fully received and fully invoiced and does not need further action. A purchase order is closed when all transactions have been completed, and there is a 3-way match (i.e., the items have been fully or partially received and invoiced). Consequently, receipt corrections may be necessary before changing the order to the invoiced amount.
Canceled – A PO has been canceled by the department, and will not be invoiced. Cancellation of a Purchase Order (PO) is only possible if there are no matched or paid invoices associated with the PO, and the goods have not been or will not be received. The supplier’s approval may be required for the cancellation process to proceed.
Change Order Process
There may be situations in which the Entered by will need to do a change order to adjust the quantity or cost.
If there is a discrepancy between the amount/quantity ordered and the amount/quantity received and invoiced, and the department does not anticipate that these items will be delivered, departments would need to close the Purchase Order by reducing the amount on the requisition.
These changes can only be completed by the Entered by, unless the requisition is assigned to another user. Users will first view the Requisition Life Cycle, and record the amount to which the PO should be reduced. Then, the Requester can open the requisition and initiate the change order.
Once the change order has been approved, the remaining money will be returned to the encumbered fund. Please note, this could take up to 24-48 hours to reflect in the iO Dashboards.
Important Dates for Year End Close
Accounts Payable – P Card – Petty Cash
- June 16 – Final deadline for payment documents for FY 2023
- June 16 – Must be received in good order – properly approved and coded, complete documentation, no vendor maintenance, and in compliance with university policy and procedures.
- June 16 – Approved expense report
- June 16 – Petty Cash vouchers to Cashier’s Office by 2 p.m
- June 16 – P card charges posted to FY 2023 by approved expense report
Purchase Orders – Encumbrances
- June 16 – Non-standard disbursements requests submitted and approved by 5 p.m. on June 16, dated on or before June 16, will post to your FY 2023 budget/cost center.
- June 29 – Enter and approve all requisitions by 5 p.m. for FY 2023
Queries on Dashboard with Final Data
- July 11 – For first close, available after 8 a.m.
- July 14 – Final Deadline for Any Finance Adjustment
- July 28 – For second close, available after 8 a.m.